Home Buying in Plainfield>Question Details

Mollie, Home Buyer in Plainfield, IN

I'm 69, own large home, want to downsize, could rent out current home. Looked at smaller HomePath eligible home I'd like to buy - possible?

Asked by Mollie, Plainfield, IN Fri Aug 13, 2010

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Sell vs Rent is a great question? What is the ROI you want on your current property. You will also, lose any exemptions you currently have if you convert to rental property. Also, maintenance and upkeep need to be figured into your choice. You can sell per "The Taxpayer Relief Act of 1997 eliminated the replacement residence rule. Under the new law, a homeowner could exclude up to $250,000 in profit from a home sale -- $500,000 for married couples filing jointly -- regardless of what they did with the money, and they could claim the exemption multiple times. To qualify, taxpayers must have been using the home as their principal residence for at least two years in the five-year period before the sale. So, effectively, the exclusion is available as often as every two years. The tax code also waives this two-years-out-of-five requirement for people in the military, the Foreign Service, the Peace Corps or U.S. intelligence agencies, who may be ordered to relocate repeatedly."

Read more: http://www.ehow.com/info_8793085_irs-onetime-exemption-selli…

Homepath is a process where you may buy a home in need of extensive repair. You need to be able to do repair yourself or have licensed contractor do. Many mortgage companies can help you with a 203k if you want to finance repair in with your mortgage. I read the other responses and they are all good and have great information. Contact a Realtor and have them help you in your decision making process. Thanks, RK Waldren
0 votes Thank Flag Link Tue Feb 11, 2014
how soon are you interested in renting your larger home ad for how long and how much....someone I know may soon be interested...is location actually in plainfield...let me know at nola.bowman@att.net thank you...
0 votes Thank Flag Link Sat Jan 5, 2013
Sure, it could be possible. If there is a mortgage on your current home, the lender would probably require you to refinance your current home to a "rental/investment" property. They would also take into consideration that you would have income from this property as well. Therefore, would open the door wider to the purchase of your new home. Please contact me if you have anymore questions or would like help in getting this taken care of, My name is Jen Stewart - Johnson

0 votes Thank Flag Link Tue Sep 7, 2010
Renting your current home is an option for sure. You want to make sure you are qualified to buy another home first, in the price range you want to buy. Its very easy to find out your qualifying status just call a local mortgage broker. It takes just a few questions and a small amount of your time and will help you immensely to make the decision you are currently contemplating. Good Luck.
0 votes Thank Flag Link Mon Aug 30, 2010
Sure. You need to determine if you can qualify for the second home. The lender can tell you if you need to rent the first home out first. It might be worth contacting a Property Management company to help you find qualified renters and to help manage the rental.

If you qualify, you can move forward with the smaller home. Just make sure it's contingent on getting financing, leasing your current property, or better yet, both.

Good luck!

Stacy Carter
Associate Broker
Better Homes & Gardens Real Estate Metro Brokers
0 votes Thank Flag Link Fri Aug 13, 2010
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